Market Movements: Neogen Corp Rises While Constellation Brands Faces Decline
- Neogen Corp shares surged 11% after raising its fiscal year revenue guidance to $885-$890 million.
- Constellation Brands saw a 5% decline despite reporting better-than-expected fiscal second quarter earnings.
- Micron’s shares fell 2.6% amid a potential strike by workers at its Taiwan operations over bonus disputes.
Neogen Corp, a food safety company, experienced an 11% boost in its shares following an upgrade to its fiscal year revenue forecast. The company now expects revenue between $885 million and $890 million, surpassing both its previous estimate of $880 million to $885 million and the FactSet consensus estimate of $883.2 million.
Penguin Solutions, known for developing artificial intelligence factory platforms, recorded a share price increase of over 4% after reporting fourth-quarter results that exceeded expectations. The company’s adjusted earnings stood at $1 per share, fueled by revenue of $566.7 million, significantly higher than the $0.77 per share and $521 million revenue anticipated by analysts.
Meanwhile, Constellation Brands’ shares fell by 5% despite posting better-than-expected results for its fiscal second quarter. The beer distributor unveiled earnings of $3.74 per share on revenue of $2.63 billion, outpacing analyst projections of $3.56 per share on $2.54 billion in revenue. However, the company’s beer operating margins shrank by 160 basis points year over year, and key demand metric depletions also showed a slight decline compared to the previous year.
Flutter Entertainment, the parent company of FanDuel, saw its shares rise nearly 3% following an upgrade by Citi from neutral to buy. Analysts at Citi expressed confidence, stating, “We believe recent share price weakness on Brazil and September US sports results concerns are overblown.”
In contrast, Micron Technology faced a 2.6% drop in its shares as part of a broader downturn in the semiconductor sector. This decline marks the third consecutive session of losses for the company, coinciding with news from a union representing Micron’s employees at its Taoyuan operations in Taiwan, which announced it had received authorization to strike over disputes regarding Micron’s bonus policy.
News Courtesy of CNBC
